ST. PAUL – State economists will soon unveil whether Minnesota once again has a budget surplus, and under legislation supported by State Representative Paul Torkelson (R-Hanska), voters could decide whether that money should be returned to them.
“Two years ago, many Minnesotans were expecting permanent and significant tax relief when they heard Minnesota had a nearly $20 billion budget surplus, and they were disappointed when the Democrat trifecta wasted it,” Torkelson said. “This bill could prevent that from happening again.”
Torkelson said the plan would ask voters whether to amend the Constitution to guarantee future budget surpluses are returned to the taxpayers. If approved, a Minnesota tax relief account would be established. Any projected revenues that go over 5% of projected expenditures according to the last biennial budget forecast will be used to fund the account and those revenues would be returned to the taxpayers via refunds.
Torkelson added the funds deposited in the account will not be taxable under Minnesota law, nor could they be used to offset the cost to the state general fund for any tax reductions made by the Legislature. Only income and property taxpayers in Minnesota would be eligible for a refund.
“This bill lets people decide if excess funds should be returned to them during times of surplus, or if the Legislature should continue divvying up the revenue as it sees fit,” Torkelson concluded.